Chapter 5. Payment Bond - California Civil Code Section 9554

9554. (a) A payment bond shall be in an amount not less than 100
percent of the total amount payable pursuant to the public works
contract. The bond shall be in the form of a bond and not a deposit
in lieu of a bond. The bond shall be executed by an admitted surety
insurer.
(b) The payment bond shall provide that if the direct contractor
or a subcontractor fails to pay any of the following, the surety will
pay the obligation and, if an action is brought to enforce the
liability on the bond, a reasonable attorney's fee, to be fixed by
the court:
(1) A person authorized under Section 9100 to assert a claim
against a payment bond.
(2) Amounts due under the Unemployment Insurance Code with respect
to work or labor performed pursuant to the public works contract.
(3) Amounts required to be deducted, withheld, and paid over to
the Employment Development Department from the wages of employees of
the contractor and subcontractors under Section 13020 of the
Unemployment Insurance Code with respect to the work and labor.
(c) The payment bond shall be conditioned for the payment in full
of the claims of all claimants and by its terms inure to the benefit
of any person authorized under Section 9100 to assert a claim against
a payment bond so as to give a right of action to that person or
that person's assigns in an action to enforce the liability on the
bond.
(d) The direct contractor may require that a subcontractor give a
bond to indemnify the direct contractor for any loss sustained by the
direct contractor because of any default of the subcontractor under
this section.